But analyst skepticism over Groupon's long-term prospects and lingering fears over the European debt crisis, as well as the tepid U.S. economy, mean that the dry spell for the IPO market will stretch on into next year.

On its first day of trading, Groupon performed better than some expected, rising 30.55% to $26.11 a share from its initial $20 per share offer price.

Few expect that pop to last, however. And the sooner Groupon fades, the more discouraging it will be to the dozens of companies looking to go public.

"Not a person I've talked to, small or large, wants to hold it longer than a day," Scott Sweet, managing director of research site IPOBoutique.com, told MarketWatch. "They don't trust it."

Deserved or not, some of the investor mania for social media stocks - some of which went public earlier this year, like Linkedin Corporation (NYSE: LNKD) and Pandora Media (NYSE: P) and some of which are planning IPOs, like Facebook Inc. and Zynga Inc. - has rubbed off on Groupon.

But Groupon's easily duplicated business model, fuzzy accounting practices and struggles to reach profitability have many experts questioning the daily-deal company's ability to survive, much less keep growing.

"I wouldn't touch it with a ten-foot pole," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "This isn't a stock for an investor looking for a long-term play with stability."

Furthermore, Groupon's IPO was structured to ensure the price spiked on launch. To keep demand artificially high, only 5.7% of the company, or 35 million shares, were floated. While in the neighborhood of other social media IPOs this year such as LinkedIn (8.3%) and Pandora (9.2%), it's far below the 27% average IPO for tech companies, not to mention the 40% average for all IPOs.

"The post-IPO investor will be taking a risk on this deal," Josef Schuster, founder of IPO research and investment house IPOX Schuster, told Reuters. "It's maybe a good trade for a day trader, in and out in a single day, but I don't want to be in it for the long run."

IPO Market in Shambles

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So while there have been many IPO busts, there also are some bargains out there.

Consider that 48 of the 76 companies that went public this year - 63% -- are trading at a price below their initial offer, according to data from Dealogic.

Indeed, many of the IPOs that had big pops on their first day have since fallen dramatically.

Epocrates Inc. (Nasdaq: EPOC), which rose 37% on its first day of trading, is now more than 38% below its IPO price. Demand Media Inc. (NYSE: DMD) shot up 33% in its debut in January, but is now 53% below its $17 IPO price.

Recent declines in the overall market have not only dinged IPOs from earlier this year - they've given pause to companies in the IPO pipeline.

A record 215 companies have withdrawn their IPOs so far this year. The previous record was set in 2008, when 214 companies withdrew their plans to list.

"Nobody wants to IPO into this fiasco of a market," Alec Levine, an equity derivatives strategist at Newedge Group told CNBC. "There's just massive liquidity risk. It would be great if you IPO'd the last 2 days, but awful if you IPO'd the previous 2 days-and so on."

Yet some companies, even several that had strong first days, have managed to stay in positive territory despite the rocky market conditions.

One of the most successful 2011 IPOs has been LinkedIn Corp. (NYSE: LNKD), which soared 109% on its first day. LinkedIn closed Friday at $87.65 - close to double its $45 IPO price. Servicesource International Inc. (NYSE: SREV) popped 35% on its first day and remains an impressive 54% above its IPO price.

And as a group, 2011's IPOs have outperformed the Standard & Poor's 500 Index by about 6.5%, although the stronger companies have generally done far better.

So let's take a closer look at a few of the busts - and some companies that now look like smart buys -- from this year's IPO class: